The Facebook IPO Equation

Friday, May 18. 2012

The Facebook IPO Equation

The Facebook Hype-PO Equation

Well, its all over bar the shouting....they went out at top of range. Facebook overhyped, plus the Punters Overoptimistic had led to an oversubscribed IPO. The Funders have taken their money, its over and out for them - which just leaves facebook under pressure to perform well enogh to step into that $100bn+ valuation.

Still, with $14bn+ in the bank, no one will be worried about cashflow for a while.....

Update - talking about Under Pressure, the stock ended Day One at the nearly same price it set off at, with the under-writing bankers jhaving to do a lot of buying to keep it there - WSJ:

Facebook's underwriters battled to keep the stock from slipping below its offering price of $38 a share. Such a stumble would have been a significant embarrassment, particularly for a prominent new issue like Facebook, the most heavily traded IPO of all time.

Next week should be interesting....

Posted by Alan Patrick in Bubblewatch at 07:25 | Comments (0) | Trackbacks (0)

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< Facebook IPO and a Tale of Two Cities | Facebook IPO and a Tale of Two Cities - Part 2 >

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